Business to Business: Business to Business: Textile IndustryTextile Industry

By Ravinath, Srinivasan, Wu, ZhouBy Ravinath, Srinivasan, Wu, Zhou

Participants of the B2B TextileParticipants of the B2B Textile

SellersSellers– Wholesalers

» www.wallace-textiles.com» www.unitedfabrics.com

– Raw products» http://www.xsyarn.com/» http://texprocil.com

– Manufacturers (dye, fiber, cotton..etc)

» http://www.filatex.com/» http://www.cortyvis.com/

– End products Manufactures

» http://www.ydii.com/» http://www.brody.co.uk/

Buyers– Retailers

» www.macy’s.com

» www.llbean.com

– End-product manufactures» http://www.ydii.com/» http://

www.brody.co.uk/– End-users

» http://www.macy’s.com

» http://www.sears.com

MAJOR PLAYERS

Sellers Buyers

Manufacturers

End Products Manufacturers

Raw Products

Wholesalers

Manufacturers

Retailers

End Users

Objectives of the B2B SitesObjectives of the B2B Sites Most of the sites are exclusively for members to reach better

tailored information with very rough information to non-members Also serves as a direct channel to consumers for specific end

products Manufacturer seeking distribution channels primarily through

wholesale Try to increase visibility among the distributor and consumer

community Offer product description with different degree of details Provide one place to find all information about price

and compare prices easily Eliminating paper work to improve efficiency and

reduce transaction cost Automated processes in a traditionally conservative

industry

ChallengesChallenges The manufacturers’ sites are generally rudimentary Become more efficient in attracting new customers Pay less attention to cycles and seasons and provide

more promotional mechanisms Most of the sites can be reached only through search

engines, less opportunities to attend Trade shows/ Fairs and hence more publicity

Make the site more public and well-known/renowned How to offer differentiated benefits for premium

customers Improve the details and specifics about the products Possibly automate regular shipping contracts

Strength and Weakness of Strength and Weakness of Current Website DesignCurrent Website Design

Good pointsGood points– Most sites provide detailed Most sites provide detailed

information about the products information about the products – Detailed information about the Detailed information about the

manufacturer, location, strength manufacturer, location, strength in industry to create confidence in industry to create confidence among buyersamong buyers

– Provide owner’s information Provide owner’s information and contact address to improve and contact address to improve personal relationshippersonal relationship

– Order forms are very user-Order forms are very user-friendly, customers don’t need friendly, customers don’t need to go through pages and waste to go through pages and waste times as do B2C customerstimes as do B2C customers

Rooms for improvementRooms for improvement– Simplicity of page layout Simplicity of page layout

without any advanced features without any advanced features » Plain outlayPlain outlay

» Text blocksText blocks

Color and images design are not Color and images design are not professional and represent no professional and represent no company image of company image of differentiation featuresdifferentiation features

– Too less information to non-Too less information to non-members and might exclude members and might exclude prospect customersprospect customers

Example of simplicity:

This is the main home page of a knitwear manufacture to attract buying agent

Example of vulgar design

This is the page of a wholesaler listing addresses of domestic distributors

A Good Portal Example

www.textileWeb serves as the hub for all kinds of companies that has anything and everything to do with textiles. The site is also very good, user-friendly and attracts huge site-traffic.

A Good Wholesale Example

www.llbean.com is an industry intermediary that both reaches the customers and conduct B2B to get the products in whole-sale through the web. The sites are well-designed and information-rich

Textile B2B Operation ModelTextile B2B Operation Model Raw material providersRaw material providers

– Manufacture of wool: Manufacture of wool: www.wool.net.auwww.wool.net.au

– Sellers of polyester, nylon, goom, etc.Sellers of polyester, nylon, goom, etc.» www.filatex.comwww.filatex.com

Initial design and fabric componentsInitial design and fabric components– Wholesalers for fabricsWholesalers for fabrics

» www.fabricclub.comwww.fabricclub.com

– Sellers of cotton fabric designsSellers of cotton fabric designs» www.hoffmanfabrics.comwww.hoffmanfabrics.com

Manufactures of textileManufactures of textile» www.unitedfabrics.comwww.unitedfabrics.com

Intermediary distributors: Intermediary distributors: www.textileweb.comwww.textileweb.com

Wholesalers and end users: www.Wholesalers and end users: www.llbean.comllbean.com

Wool Manufacturer

www.wool.net.au

www.filatax.com

Seller of polyester, nylon, etc

Wholesalers for fabrics/design

www.fabricclub.com

www.hoffmanfabrics.com

Seller of cotton/design fabrics

Wholesalers of vinyle, leather, fabrics

www.unifiedfabrics.com

Sellers of silk, leather, Manufacturers/Importers

www.ydii.com

Sellers of end products

www.wallace-textiles.com

www.webindia.com/gga

Retail Shops

www.llbean.com

www.kaufmanns.com

Intermediary hubs

www.textileweb.com End-users

Textile B2B Operation

Chart

Textile Industry LeadersTextile Industry Leaders Shaw IndustriesShaw Industries

Mohawk IndustriesMohawk Industries

Springs IndustriesSprings Industries

Burlington IndustriesBurlington Industries

WestPoint StevensWestPoint Stevens

UnifiUnifi

InterfaceInterface

Player DominancePlayer Dominance

Incorporating technology that strengthens their Incorporating technology that strengthens their strategic positionstrategic position– ““We have excellent global resources and growing ability to provide We have excellent global resources and growing ability to provide

consumer-ready products as well as fabrics. In addition, we are placing consumer-ready products as well as fabrics. In addition, we are placing strong strategic emphasis on new applications of advanced technology.”strong strategic emphasis on new applications of advanced technology.”

George W. Henderson, III, CEO of Burlington IndustriesGeorge W. Henderson, III, CEO of Burlington Industries

Establish global presence in order to expand Establish global presence in order to expand customer basecustomer base

Create complete product ownership by being Create complete product ownership by being the manufacturer, distributor, and sellerthe manufacturer, distributor, and seller

Reasons for Player DominanceReasons for Player Dominance Establish partnerships with major commercial dealers and Establish partnerships with major commercial dealers and

retailers to increase market coverageretailers to increase market coverage Mergers and Acquisition of competitorsMergers and Acquisition of competitors

– ““In addition to the Shaw/Queen merger, there was further consolidation In addition to the Shaw/Queen merger, there was further consolidation in the floor covering industry.  Additional mergers and acquisitions in the floor covering industry.  Additional mergers and acquisitions involving approximately $2 billion in revenue occurred within our involving approximately $2 billion in revenue occurred within our industry during 1998.  These acquisitions represent a rapid acceleration industry during 1998.  These acquisitions represent a rapid acceleration in the consolidation process.”in the consolidation process.”

– www.shawinc.com, CEO, CEO

By strategically positioning itself in the marketBy strategically positioning itself in the market– ““The Company is vertically integrated and is the nation's leading The Company is vertically integrated and is the nation's leading

manufacturer and marketer of bed linens, towels, comforters and other manufacturer and marketer of bed linens, towels, comforters and other accessories that are sold in retail outlets throughout the world.”accessories that are sold in retail outlets throughout the world.”

– www.westpointstevens.comwww.westpointstevens.com

Has created a brand name due to history of companyHas created a brand name due to history of company– With over 186 years of experience, WestPoint Stevens is today the nation's With over 186 years of experience, WestPoint Stevens is today the nation's

largest producer of bed and bath fashions sold in retail outlets worldwide.largest producer of bed and bath fashions sold in retail outlets worldwide.– www.westpointstevens.comwww.westpointstevens.com

Value-added in Textile IndustryValue-added in Textile Industry

Dedicated serviceDedicated service – ““We take Orders to make your brand” -- www.ydii.comWe take Orders to make your brand” -- www.ydii.com

Products are of high quality and competitive priceProducts are of high quality and competitive price– “ “ Since 1946 we have been committed to satisfying our customers, Since 1946 we have been committed to satisfying our customers,

100%, with the highest quality fabrics, in the latest styles at 100%, with the highest quality fabrics, in the latest styles at competitive prices” -- www.hoffmanfabrics.comcompetitive prices” -- www.hoffmanfabrics.com

Easy ordering for you, quick transportation from usEasy ordering for you, quick transportation from us– “… “… our friendly, well-trained customer service representatives are our friendly, well-trained customer service representatives are

available between 8:A.M. and 8 P.M., Monday through Friday…no available between 8:A.M. and 8 P.M., Monday through Friday…no minimum quantity requirement for fabrics or vinyls…can ship minimum quantity requirement for fabrics or vinyls…can ship lightning-fast…ship all orders within 24 hours of receipt.” lightning-fast…ship all orders within 24 hours of receipt.”

-- www.unitedfabrics.com -- www.unitedfabrics.com

Value-added in Textile IndustryValue-added in Textile Industry

Instant access to the latest information of textile Instant access to the latest information of textile industryindustry– ““WebIndia’s customers reap the benefits of a fast and reliable WebIndia’s customers reap the benefits of a fast and reliable

internet connection as well as less than 24 hour customer response internet connection as well as less than 24 hour customer response time” -- www.webindia.comtime” -- www.webindia.com

– ““TextileWeb provides reliable, up-to-date information to encourage TextileWeb provides reliable, up-to-date information to encourage business activity among buyers and sellers in the global textile business activity among buyers and sellers in the global textile marketplace” --www.TextileWeb.commarketplace” --www.TextileWeb.com

Free membership to the web communityFree membership to the web community Active businesses with many big companiesActive businesses with many big companies

Reasons for Value-added ServiceReasons for Value-added Service